Demand Side Constraints in Private Higher Education in Ethiopia

Abstract

There exists a general consensus that education is an economically and socially productive investment. Research findings confirm that both private and social returns to education are significant. In many countries, education is mainly provided by the government though there are major shifts from this trend in recent years. Private investment in education is increasing in countries around the world and quite noticeably so in developing countries. Ethiopia's case is no exception. The substantial increase in private investment on higher education coupled with increased public investment has led to significant supply side expansion. Both researchers and policy makers alike have focused on the supply side problems ignoring the demand side of the story. A mere supply side expansion, however, does not guaranty that the demand is matched proportionately across all members of the society. This paper identifies and presents the major demand side constraints in the market for higher education in Ethiopia. The findings of the paper would enable the researcher to argue that if proper financing mechanisms are put in place there is a possibility to overcome the demand side constraints. The paper is based on both published materials and information obtained from primary sources.